Free Practice Question
CR · Critical Reasoning
sub-505
Assumptions
When the stock market experiences a downturn, individuals tend to prepare more meals at home. Conversely, during a stock market upswing, people are inclined to dine out more frequently. This suggests that concerns about a potential economic downturn reduce consumers' willingness to spend on dining out.
Which of the following assumptions underlies this argument?
Answer Choices
Correct answer marked belowA
An economic downturn is a temporary decline in economic activity, while a recession is a prolonged period of economic decline.
The public's perception of the risk of an economic downturn is influenced by stock market trends.
Correct
C
Restaurants provide discounts when the stock market is performing well.
D
Restaurants increase their prices in anticipation of an economic downturn.
E
Many individuals find comfort in home-cooked meals during financial uncertainty.
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Explanation
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Official Explanation
Official
The argument states that when the stock market is declining, people eat at home more, and when it is rising, they eat out more. This implies that the public's perception of economic conditions, particularly the fear of a…
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Comments
4
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S
SrijiJan 9, 2025
Great
I
IshikaMar 16, 2025
good question
N
NiharikaMar 1, 2025
can you explain more?
Y
YashAug 9, 2024
greatt question!
What this question tests
What it tests
Whether you can identify the unstated assumption a critical-reasoning argument depends on.
Common trap
Picking an option that strengthens the argument or is merely relevant instead of one that is required.
Details
Difficulty
sub-505
Type
CR